…The European periphery’s bleak economic and political outlook should be raising a number of basic questions for European policymakers. How much sense does it make to have the European periphery sink ever deeper into recession as a result of severe fiscal tightening in the context of a European credit crunch and a Euro straightjacket that precludes currency devaluation to promote exports? Might the countries in the European periphery not need [...]
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As part of “a new era of civil rights” at the Department of Agriculture, Secretary of Agriculture Tom Vilsack announced Monday that Hispanic and women farmers and ranchers who believe USDA discriminated against them can file claims to get a piece of at least $1.33 billion in cash awards and tax relief payments and up to $160 million in farm debt relief, beginning this week. Women and Hispanic ranchers and farmers who feel [...] Italian GDP contracted for the last 12 months and the country is now looking at a longer and deeper recession than was previously expected. With Spain already expected to request a sovereign bailout, investors are worried that the giant Italian economy might be the next domino to fall. So the big question on everyone’s mind: Is Italian debt sustainable? i.e. can Italy meet its debt without debt relief and avoid default. In [...] Elections in Europe have shown that voters are angry about austerity and unemployment, and are punishing incumbents at the ballots.
But UBS economist Larry Hatheway says that this discontent has not offered a viable alternative for dealing with Europe’s economic and financial crisis. Hatheway says for now Europe’s biggest concern should be Greece and there are two clear paths that Greece can take. One would lead to fragmentation and the other a degree of political change that [...] From FT:
Greece is stuck in a vicious cycle of insolvency, low competitiveness and ever-deepening depression. Exacerbated by a draconian fiscal austerity, its public debt is heading towards 200 per cent of gross domestic product. To escape, Greece must now begin an orderly default, voluntarily exit the eurozone and return to the drachma. The recent debt exchange deal Europe offered Greece was a rip-off, providing much less debt relief than the country needed. If you pick apart [...] The witching hour that could determine whether Greece defaults or not is Thursday afternoon, and that will hang over markets until it’s known whether enough private investors accept a debt restructuring deal. Private sector investors have until 3 p.m. Eastern time to decide on participation in the Greek debt relief deal, and if fewer than 75 percent agree, the country could head towards a default that ultimately could trigger credit default [...] From FT: Some words are the property of continental Europeans. You do not hear many Brits or Americans talking about “solidarity”. The expression belongs to the soggy (to Anglo-Saxon minds) consensualism of social market capitalism and to prophets of European unity. What’s happened lately is that solidarity has dissolved. This explains why the euro, and the European Union, are in so much trouble. Another week, another sticking plaster. The deal to prop [...] Cow to them, and they will own your sorry A$$$’s forever…. From Bloomberg: Icelanders who pelted parliament with rocks in 2009 demanding their leaders and bankers answer for the country’s economic and financial collapse are reaping the benefits of their anger. Since the end of 2008, the island’s banks have forgiven loans equivalent to 13 percent of gross domestic product, easing the debt burdens of more than a quarter of the population, according [...] (Reuters) - Greece will need additional relief if it is to cut its debts to 120 percent of GDP by 2020 and if it doesn’t follow through on structural reforms and other measures, its debt could hit 160 percent by 2020, a confidential analysis conducted by the IMF, European Central Bank and European Commission shows. The baseline scenario in the 9-page report, obtained exclusively by Reuters, is that Greece will cut its debts [...] How to Save the Global Economy: Write Off the World’s Debt Posted on January 22, 2012
BY PAUL KEDROSKY The best way to restart global growth is with debt. We need both more and less of it. Bear with me here. We need less debt now: Developed-world debt is holding the recovery back. Individuals are cutting what they owe as fast as they can, especially in the United States and Europe, and governments aren’t [...] Think the ECB announcement to do undergo a pseudo OSI impairment is a done deal? Not so fast – Germany may yet throw a wrench in there. According to Bloomberg, next week German lawmakers will conduct three votes on Greece among which: the €130 billion Greek bailout package… Wasn’t it €145 billion by now? BRUSSELS (AP) – Greece’s international debt inspectors have discovered that the debt-ridden country still needs an extra euro15 billion ($20 billion) in help—on top of a promised euro130 billion bailout and a euro100 billion debt relief from private investors, a European official said Thursday. The European Commission, the executive arm of the European Union, has asked the rest of the 17-country eurozone to help foot the bill for the missing euro15 [...]
(Reuters) – Greece will miss deficit targets set just months ago in a massive bailout package, sources said citing a budget draft being adopted by the cabinet on Sunday, in a setback in Europe’s efforts to stave off the country’s bankruptcy. The dire forecasts come while inspectors from the International Monetary Fund, EU and European Central Bank, known as the troika, are in Athens scouring the [...] Greece is stuck in a vicious cycle of insolvency, low competitiveness and ever-deepening depression. Exacerbated by a draconian fiscal austerity, its public debt is heading towards 200 per cent of gross domestic product. To escape, Greece must now begin an orderly default, voluntarily exit the eurozone and return to the drachma. The recent debt exchange deal Europe offered Greece was a rip-off, providing much less debt relief than the country needed. If [...] (Reuters) – Banks are poised to offer a complex Greek rescue proposal, which excludes a bank levy, to a meeting of euro zone leaders on Thursday, industry sources said. The banks are ready to fight a levy in the courts if one is imposed on them to fund a Greek bailout, arguing it would unfairly punish those not exposed to the country, two of the sources said on [...] Designated as “the most powerful banker in Europe and, depending on whom you ask, possibly the most dangerous one, too,” Josef Ackermann is the man who has helped ECB’s Jean-Claude Trichet “ shape Europe’s economic and financial future.“ In a recent NY Times article, Deutsche Bank’s Chief Casts Long Shadow in Europe, the authors observe that it is no secret where the Jewish international banker’s allegiance lie: “with the banks.” For [...] |
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